May, 28 2014 - Celulose Irani on May 19 announced that it has signed a letter of intent with the government of Santa Catarina (southern Brazil) for the expansion of production at the company's kraft paper mill in Vargem Bonita, located in the Midwest of Santa Catarina.

The total investment is estimated to be approximately R$ 600 million

Celulose Irani said the expansion project will increase the capacity of the Vargem Bonita mill by about 135,000 tons per year. Currently, the mill has an annual capacity to produce 204,000 tons of kraft papers used for packaging.

The company expects the project to be completed in 2019.

In addition, Celulose Irani also has expansion plans for its Corrugated Cardboard Boxes unit, also in Vargem Bonita, which will boost the plant's capacity by about 24,000 tpy.